SEHK:8501

Stock Analysis Report

Executive Summary

Sanbase Corporation Limited, an investment holding company, engages in the provision of interior fit-out management and solutions in Hong Kong and the People’s Republic of China.


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

How has Sanbase's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8501's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.2%

8501

-2.3%

HK Construction

-3.2%

HK Market


1 Year Return

-64.4%

8501

-28.6%

HK Construction

-10.2%

HK Market

Return vs Industry: 8501 underperformed the Hong Kong Construction industry which returned -28.6% over the past year.

Return vs Market: 8501 underperformed the Hong Kong Market which returned -10.2% over the past year.


Shareholder returns

8501IndustryMarket
7 Day-13.2%-2.3%-3.2%
30 Day-8.3%-4.3%-3.3%
90 Day-47.9%-5.9%0.2%
1 Year-63.4%-64.4%-25.1%-28.6%-6.9%-10.2%
3 Yearn/a-35.3%-42.3%11.7%0.4%
5 Yearn/a-27.7%-38.4%11.1%-7.3%

Price Volatility Vs. Market

How volatile is Sanbase's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sanbase undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8501 (HK$0.5) is trading below our estimate of fair value (HK$4.01)

Significantly Below Fair Value: 8501 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8501 is good value based on its PE Ratio (4.4x) compared to the Construction industry average (8.3x).

PE vs Market: 8501 is good value based on its PE Ratio (4.4x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8501's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8501 is good value based on its PB Ratio (0.8x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Sanbase forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sanbase has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sanbase performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8501 has a high level of non-cash earnings.

Growing Profit Margin: 8501's current net profit margins (3.1%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: 8501's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: 8501's earnings growth over the past year (122.4%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: 8501 earnings growth over the past year (122.4%) exceeded the Construction industry -5.4%.


Return on Equity

High ROE: 8501's Return on Equity (20.2%) is considered high.


Next Steps

Financial Health

How is Sanbase's financial position?


Financial Position Analysis

Short Term Liabilities: 8501's short term assets (HK$344.5M) exceed its short term liabilities (HK$229.0M).

Long Term Liabilities: 8501's short term assets (HK$344.5M) exceed its long term liabilities (HK$3.5M).


Debt to Equity History and Analysis

Debt Level: 8501's debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 8501's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8501's debt is well covered by operating cash flow (4411.5%).

Interest Coverage: 8501's interest payments on its debt are well covered by EBIT (98x coverage).


Balance Sheet

Inventory Level: 8501 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8501's debt is covered by short term assets (assets are 354.4x debt).


Next Steps

Dividend

What is Sanbase's current dividend yield, its reliability and sustainability?

6.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8501's dividend (6.26%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.3%).

High Dividend: 8501's dividend (6.26%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.4%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 8501 has been paying a dividend for less than 10 years.

Growing Dividend: 8501's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.4%), 8501's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average board tenure


CEO

Sai Wong (43yo)

HK$2,701,000

Compensation

Mr. WONG Sai Chuen is the chairman, Compliance officer, chief executive officer and an executive Director of Sanbase Corporation Limited. Mr. Wong is responsible for the strategic planning, business develo ...


CEO Compensation Analysis

Compensation vs Market: Sai's total compensation ($USD346.49K) is above average for companies of similar size in the Hong Kong market ($USD226.90K).

Compensation vs Earnings: Sai's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Sai Wong
Chairman0yrsHK$2.70m56.25% HK$60.8m
Kin Wong
COO & Executive Director2.9yrsHK$2.19m18.75% HK$20.3m
Man Hui
Executive Director2.6yrsHK$1.98mno data
Chi Man Cheung
Independent Non-Executive Director0.08yrsno datano data
Chung Fai Pang
Independent Non-Executive Director2.2yrsHK$240.00kno data
Chi Kwong Chan
Independent Non-Executive Director0.08yrsno datano data

2.2yrs

Average Tenure

44.5yo

Average Age

Experienced Board: 8501's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sanbase Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sanbase Corporation Limited
  • Ticker: 8501
  • Exchange: SEHK
  • Founded: 2009
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$108.000m
  • Shares outstanding: 200.00m
  • Website: https://www.sanbase.com.hk

Number of Employees


Location

  • Sanbase Corporation Limited
  • Loon Kee Building
  • 16th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8501SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2018

Biography

Sanbase Corporation Limited, an investment holding company, engages in the provision of interior fit-out management and solutions in Hong Kong and the People’s Republic of China. It undertakes bare shell fit-out, restacking, reinstatement, design, churn works, and maintenance and other services. The company was founded in 2009 and is headquartered in Central, Hong Kong. Sanbase Corporation Limited is a subsidiary of Madison Square International Investment Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 13:16
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.